AppLovin (NASDAQ:APP) Downgraded by Zacks Research to “Hold”

Zacks Research cut shares of AppLovin (NASDAQ:APP) from a strong-buy rating to a hold rating in a report issued on Thursday,Zacks.com reports.

Several other equities analysts have also commented on the company. Wells Fargo & Company lowered their price objective on AppLovin from $735.00 to $543.00 and set an “overweight” rating for the company in a research report on Thursday. Deutsche Bank Aktiengesellschaft set a $705.00 price target on shares of AppLovin and gave the company a “buy” rating in a research report on Wednesday, October 22nd. Needham & Company LLC reissued a “buy” rating and set a $700.00 price objective on shares of AppLovin in a research note on Thursday. Wedbush raised their target price on shares of AppLovin from $465.00 to $640.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, Evercore reiterated a “buy” rating on shares of AppLovin in a report on Friday, January 30th. Twenty equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, AppLovin currently has a consensus rating of “Moderate Buy” and a consensus target price of $651.77.

AppLovin Stock Performance

Shares of APP opened at $391.55 on Thursday. The company has a 50-day simple moving average of $596.51 and a two-hundred day simple moving average of $570.32. The company has a debt-to-equity ratio of 1.65, a current ratio of 3.32 and a quick ratio of 3.25. The firm has a market capitalization of $132.32 billion, a PE ratio of 40.16, a price-to-earnings-growth ratio of 1.20 and a beta of 2.49. AppLovin has a one year low of $200.50 and a one year high of $745.61.

AppLovin (NASDAQ:APP) last posted its earnings results on Wednesday, February 11th. The company reported $3.24 earnings per share for the quarter, topping analysts’ consensus estimates of $2.89 by $0.35. The firm had revenue of $1.66 billion for the quarter, compared to the consensus estimate of $1.61 billion. AppLovin had a return on equity of 245.64% and a net margin of 57.42%.The business’s revenue for the quarter was up 66.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.73 EPS. On average, analysts anticipate that AppLovin will post 6.87 EPS for the current fiscal year.

Insider Activity

In related news, CTO Vasily Shikin sold 14,708 shares of the firm’s stock in a transaction that occurred on Monday, November 24th. The shares were sold at an average price of $548.45, for a total transaction of $8,066,602.60. Following the completion of the sale, the chief technology officer owned 35,889 shares of the company’s stock, valued at $19,683,322.05. This trade represents a 29.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Victoria Valenzuela sold 7,609 shares of the business’s stock in a transaction that occurred on Thursday, December 18th. The stock was sold at an average price of $657.13, for a total transaction of $5,000,102.17. Following the completion of the transaction, the insider owned 277,110 shares of the company’s stock, valued at approximately $182,097,294.30. The trade was a 2.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 187,786 shares of company stock worth $100,914,925. Corporate insiders own 13.66% of the company’s stock.

Institutional Investors Weigh In On AppLovin

A number of large investors have recently added to or reduced their stakes in APP. LFA Lugano Financial Advisors SA bought a new position in shares of AppLovin during the 2nd quarter valued at $26,000. Board of the Pension Protection Fund purchased a new stake in AppLovin during the fourth quarter valued at $27,000. Washington Trust Advisors Inc. lifted its holdings in AppLovin by 160.0% in the fourth quarter. Washington Trust Advisors Inc. now owns 39 shares of the company’s stock valued at $27,000 after acquiring an additional 24 shares during the period. Chilton Capital Management LLC bought a new position in AppLovin in the third quarter valued at about $29,000. Finally, Activest Wealth Management boosted its position in AppLovin by 760.0% in the third quarter. Activest Wealth Management now owns 43 shares of the company’s stock worth $31,000 after purchasing an additional 38 shares during the last quarter. Institutional investors own 41.85% of the company’s stock.

AppLovin News Summary

Here are the key news stories impacting AppLovin this week:

• Positive Sentiment: Q4 beat and raise — AppLovin reported stronger‑than‑expected Q4 revenue and EPS and issued 2026 guidance above Street estimates, giving investors a fundamentals‑driven reason to buy the stock. AppLovin (APP) Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Outstanding margins and cash flow — management reported ~84% adjusted EBITDA margins and very high free‑cash‑flow conversion, highlighting durable profitability that supports a premium valuation. AppLovin Rides on Margin Power: Here’s What You Should Know
• Positive Sentiment: Analyst support and buybacks — several firms reaffirmed or raised targets (and management disclosed large buybacks / cash generation commentary), which helps underwrite the rebound narrative. AppLovin price target raised by Wedbush
• Neutral Sentiment: Mixed analyst moves — although many shops kept Buy/Outperform ratings, several groups trimmed price targets after the volatility; this creates both support and room for further target revisions. Wells Fargo price target change and analyst notes
• Neutral Sentiment: Short‑interest data appears noisy/insignificant in recent reports (entries show zero/NaN), so shorting pressure doesn’t explain today’s move. (No meaningful short interest link available.)
• Negative Sentiment: Competition and AI fears — investors remain worried about potential competition (CloudX) and whether large platforms like Meta could encroach on AppLovin’s adtech niche; that fear helped trigger sharp earlier selloffs. AppLovin Plunges 18% Despite Blowout Earnings as AI Fears Rule
• Negative Sentiment: Broader software/AI rotation — the market‑wide re‑pricing of software names and headlines about a sector pullback have pressured APP despite the company’s strong quarter, prolonging volatility. Tech Stocks Down 50%: Buy the Dip or a Major Market Shift?
• Negative Sentiment: Market panic narrative — several commentators say recent selling was driven more by fear than fundamentals, meaning sentiment swings can still produce abrupt downside even after good results. AppLovin drops over competitor concerns, but analysts highlight positive growth drivers

AppLovin Company Profile

AppLovin Corporation is a Palo Alto–based mobile technology company that provides software and services to help app developers grow and monetize their businesses. The company operates a data-driven advertising and marketing platform that connects app publishers and advertisers, delivering tools for user acquisition, monetization, analytics and creative optimization. AppLovin’s technology is integrated into a broad set of mobile applications through software development kits (SDKs) and ad products designed to maximize revenue and engagement for developers.

Key components of AppLovin’s offering include an ad mediation and exchange platform that enables publishers to manage and monetize inventory across multiple demand sources, and a user-acquisition platform that helps advertisers target and scale campaigns.